AFCA and E-Control present final report on joint task force to investigate the Austrian energy sector
Austria’s Federal Competition Authority (AFCA) and Energie-Control Austria (E-Control) have published the final report of their joint investigation into the electricity and gas sectors, launched in early 2023 amid rising prices before and after Russia’s invasion of Ukraine. The report finds that competition is not fully functioning 24 years after market liberalisation: providers hold 68% to 98% market shares in their network areas, competition is largely local, and cross-holdings and low switching rates constrain the market. Half of customers have never switched providers; switching rates are 4.5% for electricity and 6% for gas, while usage-based prices have fallen slightly since the investigation began but remain above pre-war levels. AFCA says it will now focus on individual investigations.
Against the background of higher electricity and gas prices before and after the beginning of the war in Ukraine in February 2022, the Austrian Federal Competition Authority (AFCA) and Energie-Control Austria (E-Control) launched a joint investigation into the Austrian energy sector (electricity and gas) in early 2023. The results of this investigation are now available in a final report.
Energy Task Force Final Report 2025 (in German)
Press conference material (in German)
Results of final report
All things considered, competition is not fully functioning in Austria 24 years after the market was liberalised. The market situation appears as follows:
- Market definition: The two authorities found that rather than competition across the country as a whole there is only local competition, and that a differentiation should be made between relevant customer groups (wholesale and retail). Market definition plays an important role in analysis and possible individual proceedings. It explains where competition is taking place.
- Market shares of providers: The providers dominate their network areas with market shares of between 68% and 98%.
- Foreclosure of network areas: A large number of providers, specifically those with extremely high market shares, offer electricity and gas only within their own respective network areas.
- Prices:
- Electricity prices vary considerably among geographical regions, meaning there is no homogenous national market.
- Usage-based prices (energy price only, excluding standing charges) for electricity and gas have dropped slightly since the two authorities started their investigation in early 2023. However, consumer prices have still not returned to pre-war levels.
- Consumer behaviour: Switching rates in Austria are particularly low compared with other European countries (50% of all customers have never switched providers), which increases providers’ market power. The switching rate for electricity is 4.5% and for gas 6%, while in Italy it is 18% and 13% respectively.
- Cross-holdings: The Austrian market is characterised by strong direct and indirect business links among energy suppliers. Such cross-holdings impede competition and impact negatively on Austria as a base for business.
“Market concentration continues to be very high. Local fragmentation, numerous cross-holdings among companies and low switching rates, when compared within the EU, characterise competition restrictions. We at the AFCA are now focusing on individual investigations,“ summarises Natalie Harsdorf, Director General of AFCA.
“Austrian switching rates are very low compared with the rest of Europe. In 2023, for example, those rates were 18% and 17% in Italy and Belgium respectively. There is still a lot of room for improvement here in Austria,” stresses Wolfgang Urbantschitsch, Executive Director of E-Control.
https://www.bwb.gv.at/en/news/detail/afca-and-e-control-present-final-report-on-joint-task-force-to-investigate-the-austrian-energy-sector
